Nexo Plans Buying Stake in Summit National Bank

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  • Summit National Bank is a US federally chartered bank, founded in 1984.
  • Customers of Summit will now have access to blockchain products.

Nexo, a cryptocurrency lending platform, recently revealed that it was acquiring a stake in Summit National Bank, based in Wyoming. Taking a stake in the US federally chartered bank supervised by the Office of the Comptroller of the Currency allows Nexo, located in Switzerland, to increase its presence in the US market. Nexo said they couldn’t talk about the specifics of the private transaction.

Nexo stated:

“We prefer not to focus on the size of the transaction, but rather on the mutually beneficial effects the stake acquisition will have on both companies and, more importantly, their clients.”

Beneficial to Summit Customers

This news comes after eight state authorities deemed Nexo’s Earn Interest Product to be unregistered security. And issued a cease-and-desist order.

When asked about his decision to join the board of Summit National Bank, Kalin Metodiev, co-founder and chief financial officer of Nexo, said that it was “another landmark in Nexo’s relentless drive to better serve our US customers in compliance with the constantly evolving regulatory landscape.”

Customers of Summit will now have access to products that sit at the crossroads of conventional banking and blockchain technology thanks to Nexo’s integration.

Nexo claims the acquisition would enable the company to provide banking services. Moreover, asset-backed loans, card programmes, and escrow and custodial digital asset solutions to retail and institutional customers in the US.

Summit National Bank president and chairman of the board Forrest Gilman stated:

“We are delighted to welcome Nexo aboard. This is the culmination of more than two years of unfaltering dedication to combining Summit National Bank’s traditional approach and values with our vision for the bank’s future.”

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